October 26, 2026

The Truth Behind Luckin Coffee Franchising Exposed: An Analysis of Its Direct-Operated Model and a Fraud Prevention Guide

July 14, 2018
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Introduction:In recent years, online rumors about Luckin Coffee opening up franchising opportunities have attracted widespread attention from investors. However, Luckin has officially stated on multiple occasions that it operates exclusively through a direct retail model and does not accept any form of franchising. This article takes an in-depth look at Luckin’s operational structure, store classifications, and dissects the common tactics used in franchising scams to help you identify false information and avoid falling into investment traps.

Recently, numerous messages circulating online have claimed that Luckin Coffee is opening its doors to franchising. In particular, some websites that appear to be official provide detailed franchise procedures and investment plans, sparking interest among many coffee professionals and investors. However, the truth is that Luckin Coffee officially declared years ago that the brand firmly adheres to a direct-operated business model.It does not accept any form of franchising whatsoever.。

A netizen posted a warning in a well-known coffee-related discussion forum, alerting others that scammers have recently impersonated Luckin officials by using fake websites to publish franchise advertisements. These ads lure potential investors into providing personal information or even making payments, ultimately leading to financial loss. These fraudulent websites often mimic the official design and may even include detailed franchise fees and store renovation budgets. Though they appear professional, they are riddled with inconsistencies.

According to our investigation, the primary operating entity of Luckin Coffee is “Luckin Beijing.” All of its stores nationwide are set up as directly operated branches, covering core commercial districts and community locations in first-, second-, and third-tier cities. These stores can generally be divided into four main types:Flagship stores (over 100 square meters), Leisure stores (approximately 60–100 square meters), Pick-up stores (approximately 20–60 square meters), and Pop-up stores (temporary small outlets, usually less than 20 square meters). Each type of store is planned according to the characteristics of the commercial area and the needs of the target customer base.

It is worth noting that the so-called “franchise fee breakdowns” circulating in the market—such as claims that renovating an existing store costs around 200,000 RMB or that investing in a new store costs 800–1,000 RMB per square meter—are not from official sources. These false claims often include detailed cost breakdowns such as renovation, equipment, deposits, raw material expenses, and staff salaries. Some even claim that “an initial investment of just 300,000 RMB is enough to start operations,” attempting to boost credibility with seemingly reasonable figures.

How can you distinguish between real and fake? The first step is to verify the URL and the operating entity. The only official information channel for Luckin Coffee is http://www.luckincoffee.com/about, which clearly states that its operating entity is Luckin Beijing. In contrast, websites that claim to be the “official Luckin franchising portal” not only lack substantive company information but also typically use non-standard domain names. Moreover, their pages usually contain no corporate certifications or contact details at the bottom.

An observer in the coffee industry pointed out that investing in the coffee sector requires extra caution, especially when dealing with franchise invitations from unknown sources. It is advised that prospective investors verify information directly through Luckin’s official customer service or by visiting physical stores. One should never easily believe online advertisements promising high returns or “low-barrier franchising” rhetoric. Additionally, using corporate information platforms such as Tianyancha to investigate the background of operating entities is also an effective method for verifying authenticity.

In summary, Luckin Coffee’s current expansion strategy is entirely focused on the direct-operated model, with all stores managed directly by the headquarters to ensure brand consistency and service quality. For consumers, this means more stable product quality and a better consumption experience. For investors, recognizing franchising scams and choosing legitimate investment channels are key to avoiding losses.

The above content is compiled by CoffeeHunters, a coffee news website.

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